Saxo Bank on track with sound results for 2009

06 April 2010

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Copenhagen - Today, the online trading and investment specialist announced steady results and positive emergence from the financial crisis.

Business picked up during the second half of 2009 after a relatively slow beginning to the year. Operating income for the year was DKK 2,228 million compared to DKK 2,518 million in 2008. EBITDA was DKK 441 million while net profit was DKK 201 million with 80% earned in the second half of the year.

As of 31 December 2009, the solvency ratio was 19%. The Bank’s ICAAP process showed a minimum capital requirement of 8%.

The founders and CEOs of Saxo Bank, Kim Fournais and Lars Seier Christensen, said in a joint statement:

“Saxo Bank is a trading, investment and savings specialist not engaged in traditional lending activities and not dependant on traditional loan financing business. That has worked to our advantage in what was a very difficult year for everyone. Saxo Bank’s business model has shown some resilience to the financial crisis and we are satisfied with the results.

“2009 was a year of geographical expansion and establishing new business areas. We opened five new offices and our Asset Management business grew significantly. The new Saxo Equity Platform, which was launched in March 2010, sets the stage for a year, which will be characterised by new products and platform developments. Even though such investments have no or limited impact on income in the short run, we believe it is the right time to take advantage of the many opportunities available to take the Bank to the next level.”

The value of clients’ collateral deposits related to the trading business increased more than 70% to DKK 15 billion as of 31 December 2009. On 1 April 2010 it was more than DKK 17 billion.

In 2009, Saxo Asset Management was launched to cater for the top segment of High-Net-Worth Investors. The new business area is the combined concept of three asset management businesses acquired in 2009. The asset management activities of the Bank now include expertise within Danish bonds, Nordic Stocks, high-yield and emerging market bonds. The acquired companies, Sirius, Capital Four and the 51% stake in Global Evolution, grew assets under management organically from approximately DKK 10 DKK billion at the time of acquisition to more than DKK 20 billion as of 31 December 2009. On 1 April 2010 it had grown another 25% to DKK 25 billion.

Saxo Bank has no engagement in traditional lending activities. However, in response to the instability and lack of confidence in the financial markets, Saxo Bank chose to join the Danish State’s Guarantee Scheme (the Private Contingency Association). The scheme, which expires on 30 September 2010, includes an unconditional state guarantee for the obligations of Danish banks, except for subordinated debt and covered bonds. During the two-year guarantee period, the participating banks may not pay out dividends or implement new share buy back programs. On 24 March 2010, a majority in the Danish Parliament agreed on a new guarantee scheme, which would bring deposit guarantees into line with European Union rules. The new guarantee scheme is set to take effect from 1 October 2010. All Danish banks are covered by the scheme.

Founded in 1992, Saxo Bank is renowned for its award-winning online trading platform, SaxoTrader, which is available directly through Saxo Bank or one of the Bank’s White Label partners.

Fournais Holding A/S and Lars Seier Christensen Holding A/S owns 30% each of Saxo Bank. Espirito Santo Financial Group and Banco Espirito Santo Group together holds 9.9% and General Atlantic has 22% ownership in the Bank. The remaining interest is primarily held by a number of current and former employees of Saxo Bank.

At today's annual general meeting, the shareholders in Saxo Bank elected three new members to its board. New Chairman of the Board is Kurt K. Larsen. Mr. Larsen was CEO of the international transport group DSV for many years and is the group's Chairman today. Moreover, Professor Thomas Plenborg, PhD, from the Department of Accounting and Auditing at Copenhagen Business School, and Isabel Ferreira, Managing Director of the Portuguese online wealth management bank, BEST, was elected. They replace the current Chairman Henrik Thufason as well as Attorney-at-law John Korsø Jensen and former Head of Foreign Exchange and Structured Products at Citigroup, Julian Simmonds, who did not seek re-election.